Bitcoin Surges To Its Best Week Since December (BTC)

From Tyler Durden: Bitcoin is extending gains from yesterday’s high volume surge, back above $8,000 and up over 25% on the week – the best since early Dec 2017 – as the tax-driven selling overhang lifts ahead of Monday.

In a report last week, Lee noted that, since US households owe an estimated $25 bln in capital gains taxes due to their crypto holdings, and crypto exchanges also will owe income taxes, both households and exchanges will be selling their crypto to pay the US government:

“We believe there is selling pressure by crypto exchanges who are subject to income tax in U.S. jurisdictions. Many exchanges have net income in 2017 [of more than] $1 bln and keep working capital in [Bitcoin]/[Ethereum], not USD — hence, to meet these tax liabilities, are selling BTC/ETH.”

According to Lee, “historical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value.”